Mexico says "very close" on NAFTA issues with the U.S.

2018-08-10 19:18:00

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WASHINGTON — Mexico's Economy Minister Ildefonso Guajardo said the country was getting close to overcoming sticking points with the United States over the renegotiation of the North American Free Trade Agreement (NAFTA).

Asked as he arrived for Friday's talks in Washington if he could finish the US-Mexico issues on Friday, Guajardo said "I don't think today but we are very close."

The bilateral issues the two countries are hammering out include what percentage of auto industry components need to be made in North America to avoid tariffs, and how many cars and trucks need to be made in factories paying higher wages.

The US-Mexico NAFTA talks resumed three weeks ago, without Canada, after negotiations involving all three members of one of the world's largest trade blocs stalled in June.

Mexico's economy minister on Thursday said his team was working hard to strike a deal with the United States on new rules for the auto industry, which could pave the way for Canada to rejoin talks to revamp the North American Free Trade Agreement.

The US-Mexico NAFTA talks resumed three weeks ago, without Canada at the table, after negotiations involving all three members of one of the world's largest trade blocs stalled in June.

After a second day of meetings with US Trade Representative Robert Lighthizer in Washington, Guajardo said talks were "advancing" but that it was not clear how long it would take to settle US-Mexico issues before Canada would come back to talks.

"We keep working, we are advancing and progressing with various issues, this morning we covered a good number of them," Guajardo said.

Mexico and Washington have been discussing rules for the automotive sector, which has been a major point of contention between the two countries.

The United States has sought tougher rules on what percentage of a vehicle's components need to be built in the NAFTA region to avoid tariffs, as well as demanding that a certain number of cars and trucks be made in factories paying at least $16 an hour.

Asked about the discussion on autos on his way out of Lighthizer's office, Guajardo said "we are doing our best to do it as fast as possible," adding that he would remain in Washington on Friday.

Before entering the meeting with Lighthizer, Guajardo was asked by reporters whether Canada would take part next week in the talks, and he said "possibly."

"But we have to make sure that the US-Mexico bilaterals (are) done," he said.